Ticketmaster 1099-k cost offset for Season Tickets

[Danny1329]

I anticipate receiving a  1099-k from Ticketmaster. For example purposes, I purchased 41 games for the NBA season at a cost of $6,000. I sold a few games in 2023 through Ticketmaster for a gross income of $800 which triggered the 1099-k that offsets some of the costs of the $6,000. The ticket purchase was billed and paid monthly evenly over the course of twelve months. How do I report the 1099-k income and what would be my cost offset? How do I report my cost offset?

[RobertB4444]

If you’re self-employed or work as an independent contractor, you typically report your income, including that from forms 1099-K, on Schedule C of your Form 1040, individual income tax return. If your business is organized as a pass-through entity like a multi-member LLC, LLC electing to be treated as a corporation, S Corp or Partnership, you’ll need to report this information on your Form 1120, 1120S or 1065.

You'll report the total income received as shown on the 1099-K.  Then you need to find the cost of the individual games that you sold.  If each ticket had a face value then that's easy.  If not then you just divide the total cost by the number of games in order to find the cost per game.  You deduct what you paid for the tickets that you sold from the income that you made and then you will pay taxes on whatever profit you made.

@Danny1329 

[Danny1329]

In the response, why is there no mention of the Nov 2023 IRS ruling that has delayed the $600 form 1099-k reporting threshold for tax year 2023 to taxpayers receiving over $20,000 and has more than 200 transactions? This is something that seems to be important. Am I miss-reading the IRS ruling?

[DaveF1006]

Here is the latest announcement from the IRS regarding 1099 K reporting issued 11/23. 

For 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

Taxpayers should be aware that while the reporting threshold remains over $20,000 and 200 transactions for 2023, companies could still issue the form for any amount.

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@Danny1329